Poland’s hydrocarbons extraction law designed to attract investors
February 18, 2013
The Polish government hopes to encourage investors to step up hydrocarbons exploration and extraction with the new hydrocarbons bill sent to social and inter-ministerial consultations on Friday, Environment Minister Marcin Korolec said presenting the bill.
Contrary to earlier assumptions, the bill does not include tax regulations, which will be covered by a separate bill to be prepared by the Finance Ministry, Korolec said.
Among solutions aimed at increasing interest in exploration and extraction, Poland will replace the existing three types of licenses - for shallow exploration, deep exploration and extraction - with just one, the minister said. Exploration will require no license, while deep exploration and extraction will be covered by a single license.
Investors will also need no environmental permit for exploration drillings if they don't exceed 5,000 meters, he added.
All new licenses will be issued in a tender procedure, which will consist of three stages: qualification, tender itself and cooperation agreement signed with the national operator NOKE (whose share in the profits cannot exceed 5%), the bill stipulates.
Licenses will be issued for a period of at least 10 years but no longer than 30 years.
The law is to go into effect as of January 1, 2015.